CLC056 Exam06_Analyzing Contract Costs success!!!

CLC056 Exam06_Analyzing Contract Costs What are six "Proposal Analysis Techniques?" - CORRECT ANSWER - 1. Price Analysis 2. Cost Analysis 3. Cost Realism Analysis 4. Technical Analysis 5. Unit Prices 6. Unbalanced Pricing What is a "Price Analysis?" - CORRECT ANSWER - The process of examining and evaluating a proposed price without evaluating its separate cost elements and proposed profit. Use when: Certified cost or pricing data are not required. What is a "Cost Analysis?" - CORRECT ANSWER - The review and evaluation of the separate cost elements and profit in an offeror's or contractor's proposal, and the application of judgment to determine how well the proposed costs represent what the cost of the contract should be. Use when: Evaluating the reasonableness of individual cost elements when certified cost or pricing data are required. The Government may use price analysis to determine the overall price fair and reasonable in conjunction with cost analysis. Cost analysis is never performed on sealed bids. What is a "Cost Realism Analysis?" - CORRECT ANSWER - The process of independently reviewing and evaluating specific elements of each offeror's proposed cost estimate to determine whether the estimated proposed cost elements: (i) are realistic for the work to be performed; (ii) reflect a clear understanding of the requirements; and (iii) are consistent with the various elements of the offeror's technical proposal. The "probable cost" should reflect the Government's best estimate of the cost of a contract that is likely to result from the offeror's proposal. Use when: Determining the probable cost of performance for each offeror on a cost reimbursement type contract. Cost realism analysis may be used on competitive fixed- price incentive contracts or, in exceptional cases, on other competitive fixed-price contracts when (i) new requirements may not be fully understood by competing offerors, (ii) there are quality concerns, or (iii) past experience indicates that contractors proposed costs have resulted in quality or service shortfalls. What is a "Technical Analysis?" - CORRECT ANSWER - Used for examining: (i) Types and quantities of material proposed and the need for the types and quantities of labor hours and the labor mix. (ii) Any other data that may be pe